XY Planning Network Unveils Sapphire: A Revolutionary RIA Affiliation Model for Fee-Only Financial Advisors

In a significant development for the financial advisory industry, XY Planning Network (XYPN) has introduced Sapphire, a groundbreaking Registered Investment Advisor (RIA) affiliation model designed to empower fee-only financial advisors. This new offering provides a unique path to independence, combining the benefits of a corporate RIA structure with the flexibility and autonomy that many advisors seek.

Sapphire represents a departure from traditional RIA affiliation models by eliminating asset minimums, constraints, and hefty fees typically associated with joining a corporate RIA or broker-dealer. This innovative approach allows advisors to access XYPN's comprehensive suite of technology, support, and resources while maintaining control over their business operations.

The launch of Sapphire expands XYPN's membership options, now offering two distinct paths for advisors. The existing Emerald path continues to provide the familiar benefits of XYPN membership, catering to those who prefer maximum flexibility in managing their firms. The new Sapphire path, on the other hand, is tailored for advisors seeking additional support in areas such as back-office compliance, investment management, and client administration.

One of Sapphire's most notable features is its commitment to advisor independence. Unlike many corporate RIA models, Sapphire members retain ownership of their business, clients, and data. This structure allows advisors to transition to another platform at any time, taking 100% of their revenue with them. As independent contractors rather than W-2 employees, Sapphire members have full control over their business operations.

XYPN CEO and co-founder Alan Moore emphasized the importance of this new offering, stating, "We created Sapphire because many of our members asked for this option. They wanted a program that would allow them to focus on clients, not compliance and regulations." This sentiment reflects a growing demand in the industry for solutions that balance support and independence.

The Sapphire model also addresses regulatory challenges faced by many advisors. As an SEC-Registered Investment Advisor, Sapphire enables practices to be registered within days, bypassing the often lengthy state-level registration process. This feature is particularly beneficial for advisors operating in multiple states or facing complex regulatory environments.

XYPN has already completed a successful pilot program for Sapphire, providing comprehensive support to a select group of advisors across various aspects of their practices. The company plans to onboard two to three advisors monthly, with a target of transitioning approximately 50 advisors by the end of 2025. Additionally, XYPN is developing new service offerings in marketing, success coaching, and community engagement to further enhance the Sapphire experience.

The pricing structure for Sapphire membership is designed to be transparent and affordable, addressing concerns about opaque pricing models in the industry. Advisors pay a flat fee of $1,500 per month plus 20% of their revenue, a straightforward approach that contrasts with more complex fee structures often found in traditional affiliation models.

The introduction of Sapphire by XYPN represents a significant shift in the landscape of financial advisory services. By offering a model that combines the benefits of a corporate RIA with the independence valued by many advisors, XYPN is challenging industry norms and providing a new avenue for fee-only planners to grow their practices. This development could potentially reshape how financial advisors approach their business structures and client relationships, ultimately leading to more diverse and flexible options in the financial planning industry.